Impact of US Aid freeze on South Africa's healthcare and education
Cape Town - South Africa is currently under threat as plans to terminate all future aid due to the country, which could affect approximately $440 million in assistance to South Africa, disrupting vital programmes including HIV/Aids and education supported by Pepfar and impacting dozens of NGOs in the country.
This follows US President Donald Trump’s announcement that his administration will stop all future funding for the country, where many organisations heavily rely on Western funding.
If Trump lives up to his promise, here are some of the programmes that will be affected:
According to Health Policy Watch (HPW), some NGOs heavily reliant on US funding, including the Wits Reproductive Health and HIV Institute, have been affected, with some initiatives facing immediate funding halts.
It stated the suspension of Pepfar funding, worth $332.6 million in 2024 alone, had helped assist the treatment of at least 5.9 million South Africans receiving antiretroviral therapy.
“This disruption could lead to service delays at clinics, particularly those serving vulnerable populations.
“Many people depend on these clinics for lifesaving ARVs that they need to take every day for life to keep their immune systems healthy, prevent drug-resistant HIV – and stop them from transmitting HIV to others once their viral load is undetectable.
“Some clinics gave clients until the end of Tuesday to fetch ARVs while others directed them to government clinics,” reported HPW.
Associate Vice President for Research and Professor of Pharmaceutical Sciences, University of Iowa, Dr Aliasger Salem, warned of job losses and further economic strain due to the aid freeze, which will lead to job losses within the health sector.
“The pause underscores the research funding pipeline's fragility and administrative uncertainty's cascading effects. Early-career scientists who often rely on timely grant awards to establish their labs are particularly vulnerable, heightening concerns about workforce sustainability in biomedical research,” he said.
The University of the Witwatersrand confirmed that USAID had issued it with a stop-work order for some of its HIV programmes.
Wits Reproductive Health and HIV Institute (RHI) is the largest recipient of Pepfar funding in South Africa. The halt of the financing threatens their ongoing HIV treatment and prevention programmes, which are vital for millions of patients.
Section 27, a public interest law organisation, has expressed concerns about the broader implications of the funding freeze on health services. The organisation emphasised that while Pepfar does not fund most of South Africa’s HIV programme, its contributions are still critical for specific areas.
According to Pepfar, it has funded over 1,250 local community organisations since its inception, with South Africa's Health Minister Dr Aaron Motsoaledi indicating last week that the suspension of funding jeopardises direct health services and poses risks of job losses within these NGOs, further straining South Africa’s healthcare system amid an ongoing public health crisis.
As trade relations take a deep strain, South Africa’s status under the African Growth and Opportunity Act (AGOA) is at risk, which could diminish its access to US markets.
The AGOA expires in September this year; if not renewed, it may negatively affect South African exports and jobs.